The west-dipping conductors are situated adjacent to, and along strike from a zone of high nickel-cobalt intercepts identified from historic drilling (see Figures 2 and 3 in link below). The historic intercepts include;

Maximum values from any one single sample are 2.04% nickel (2 metre composite sample in KURC22), 0.33% cobalt (4 metre composite sample in KURA400) and 0.28% copper (2 metre composite sample in KURC42). The presence of elevated copper is potentially indicative of nickel sulphide mineralisation within the prospect area.

Reverse Circulation drilling to determine the significance of the EM conductors and the nickel-cobalt drill intercepts will commence next week.

A new nickel - cobalt target.

A review of historic aeromagnetic and drilling data for the area to the south of the main prospect, has identified another zone of nickel-cobalt mineralisation within an historic aircore drill hole which appears not to have been followed up (see Figures 2 and 3 in link below). This mineralisation includes;

Significantly magnetic data shows that KURA50 (drilled in mid-1990's) lies adjacent to a discrete magnetic anomaly that may represent favourable ultramafic rocks (shown as "hot colours" on the magnetic imagery in Figures 2 and 3 in link below). The interpreted ultramafic rocks continue for several kilometres with only wide-spaced (drill holes nominally every 80 - 160 metres on traverses 320 metres apart) shallow aircore drilling previously undertaken over the area.

The KURA50 intercept and southern ultramafic extensions represent a priority target for field follow-up which Mithril will undertake at the same time as next week's drilling.

Mithril looks forward to updating the market once drilling has commenced and as further results come to hand.

Kurnalpi Nickel Cobalt Prospect - EM Survey Specifications

The 2018 ground TEM surveying at Kurnalpi was carried out by GEM Geophysics between the 18th and 24th January 2018. The data were acquired using a GEM GT-HO high-powered transmitter, SMARTem24 receiver, and Jessy Deeps HT-SQUID sensor. MLTEM data were acquired with a single turn 200 x 200m loop with nominal 50m station spacing on 100m-spaced lines.

Contractor Details

Operator : GEM Geophysics

Survey Date : 18th - 24th January 2018

Survey Design

Configurations : In loop

MLTEM Stn Spacing : 50m

MLTEM Line Spacing : 100m

Datum/Projection : GDA94/MGA51

Receiver

Receiver : SMARTem-24

Sensor : Jessy Deeps LT-SQUID

Component Directions : Z +ve up, X +ve East, Y +ve North

Transmitter

Transmitter : GEM GT-HO (100A)

MLTEM Frequency : 1.0 Hz

MLTEM Time Base : 200 msec

MLTEM Loop Size : 200 x 200m

MLTEM Current : 73-75A

The survey coverage is shown in Figures 2 and 3 (see link below) with survey locations summarised below. A total of 126 stations were recorded over 7.5 lines for a total of 5.9 line-km.